A Chapter 7 bankruptcy remains on your credit report for 10 years. That is a long time and requires you to be pro-active in rebuilding credit. Credit impacts more than your ability to borrow money. Bad credit can mean higher car insurance rates, higher homeowner insurance rates, or even keep you from getting that new job.

​Before the “Great Recession” many bankruptcy filers used to get a mailbox full or credit card applications right after filing. The credit card companies were all too eager to sign people back up again when credit was open to anyone with a name.

​​Clients often ask me when they can buy a house or car on credit again. My experience is that the current credit market is just as important as credit score. Before the economic downturn credit was freely given. Immediately after the credit crisis, the market over-corrected making credit difficult to obtain even for those with perfect credit. The pendulum has started to swing back towards the middle, but nobody knows what the future holds.

Easy tips to rebuild credit

Obtain and use credit cards after filing. (Try Capital One and Orchard Bank)

Treat credit cards like a debit card- pay them off in full each month.

If you re-affirm car debt make sure you make each payment on time.

Save extra money so you can make a larger down payment on that new car.